IS IT TIME TO INVEST IN RENEWABLE ENERGY STORAGE SOLUTIONS?

Investment in energy storage solutions for renewable energy is predicted to deliver major growth in the near to medium future. But is there a solid basis for this prediction?

Most renewable energy sources, using the sun, wind, biomass or waves, are inherently unpredictable. The key to a reliable supply is to be able to store excess energy for release when production drops.

Ever since the oil crisis of the early ’70s and the resultant interest in renewable energy, the key to widespread adoption of ‘green’ energy has been expected to be the emergence of new battery technology. Batteries back then were too bulky, heavy and inefficient, with high losses during transmission.

Although that very big breakthrough in battery technology hasn’t yet happened, incremental improvements in existing technology, use of new materials and better manufacturing processes have combined to make large-scale storage solutions more effective and cheaper to build. This, coupled with steep demand growth, makes renewable energy storage an attractive investment.

A little over a year ago, the combined electrical capacity of static storage facilities in the UK totalled 24MW. However, a report by Eunomia predicted a rise to 1.6GW by 2020 – a 66-fold increase on the levels of January 2016.

This rise will be driven by the growing number of companies and landowners involved in renewable energy realising that they can now store excess production effectively for later release – energy that can be sold rather than simply leaking away.

This will increase interest in companies developing this energy storage infrastructure: the batteries themselves, control and delivery mechanisms and other supporting technologies.

The more the market grows and matures, the more the sector becomes an inviting target for fixed asset investment. There’s no doubt that the renewable energy sector is moving to the mainstream, rather than an ‘alternative’ high-risk market.

The ability to store excess energy effectively is a key underlying technology supporting all renewable energy projects, regardless of the generation method, so it is a more solid investment than selecting a particular generation method.

If you’re interested the opportunity that renewable energy storage presents and want to get in on the ground floor, why not get in touch now to explore the options available to you?

ARE CRYPTOCURRENCIES A WISE INVESTMENT?

With the world’s first Bitcoin ETF due for launch later this year, many investors are wondering if cryptocurrencies are a viable investment option. So, what are the pros and cons of investing in cryptocurrencies?

 

How do cryptocurrencies work?

Cryptocurrencies are media of exchange that use cryptography to keep transactions secure and to control the creation of the units of currency. Rather than physical currency, cryptocurrencies rely on ‘blockchain’ technology. A blockchain is a ledger that is kept by every participant in the market. When a new entrant wants to join the market, the existing participants run algorithms that evaluate the transaction and disapprove or approve it.

The most popular cryptocurrency is Bitcoin.

 

Bitcoin pros

Although cryptocurrencies may be the currency of the future, investing in them now is rather like investing in an emerging market. However, investing in cryptocurrencies does offer advantages.

Unlike physical currencies, cryptocurrencies are virtually impossible to counterfeit, and unlike credit card chargebacks they cannot be reversed. Again, unlike credit cards or contracts, cryptocurrency transactions are settled immediately without the need for third party approval.

Cryptocurrency ‘miners’ are compensated by the network of participants for verifying transactions, so there are no transaction fees incurred by investors.

 

Bitcoin disadvantages

As with many forms of investment, Bitcoin does present a few disadvantages.

Cryptocurrencies are vulnerable to electronic theft, and unlike with credit cards, there is no recourse for compensation. There are also questions around the scalability of cryptocurrencies as regards a technical level. This could mean that cryptocurrencies may be a long way off replacing credit cards.

At the moment there are a relatively small number of merchants that will accept Bitcoin as a payment method, reducing the usefulness of the currently.

Although cryptocurrencies have become very popular over recent years, they are viewed as the currency of the future, and as such should be viewed by would-be investors as highly speculative. However, cryptocurrencies do offer a number of advantages and the savvy investor could stand to make a sound long-term investment for the future, provided due diligence is carried out first.

SHOULD YOU INVEST IN PROPERTY?

When people decide to invest in property, they may think of purchasing a holiday home or financing a buy-to-let property in the UK. While these are viable options for many people, there are far more options when it comes to investing in property or other fixed assets.

Indeed, you can make investments in property without having to deal with the management or ownership of the site. If you want to reap the rewards of property investment, without purchasing your own structure, there are plenty of opportunities available.

 

Fixed assets vs. stock and shares

Although fixed asset investments can make losses, as well as profits, they are generally considered to be more stable than the stock markets.

Whilst stock markets are always subject to fluctuations, the current climate has seen unpredictable behaviour in many of the big markets. Due to this, the volatility of the markets has increased, leaving investors facing significant losses if things go wrong.

Traditionally, stock markets have been the first port of call for investors but this is no longer the case. Increasing numbers of investors are looking outside the markets for viable investment opportunities.

Although there are no guarantees when investing in property, these fixed asset investments can provide long-term returns for investors. As many people feel more comfortable investing in bricks and mortar projects, a property investment could be the ideal choice for many individuals.

 

Commercial or residential property: which should you invest in?

With many commercial buildings and residential sites undergoing construction, there are numerous investment opportunities available. Whilst some commercial property investments are government-backed initiatives, there are significant benefits of exploring the residential property market as well.

Ultimately, you’ll need to determine what your level of investment will be and your objectives in order to assess which is the right choice of investment for you. For example, the income made from renting out commercial property is generally much greater than the income made from renting out residential property, something else you should consider.

When you’re deciding where to invest your finances, it’s important to seek expert help. A professional investor can help you to build a portfolio to suit your needs and give you the best chance of making a significant return.

 

To learn more about fixed asset investments or to find current investment opportunities, why not contact us today?

COULD YOU INVEST IN FIXED ASSETS?

Choosing where to invest your capital could be one of the biggest decisions you’ll ever make and it’s likely to have a significant impact on your future and your lifestyle. While all investments are liable to drop or rise, building your investment portfolio carefully could ensure that you make a considerable return on your original sum.

While many people automatically opt to purchase stocks and shares when they first invest, this isn’t always the best option. The stock market can fall or rise rapidly and you could face sudden and unexpected losses.

In a post-Brexit world, it may be more difficult to predict changes in the markets so you may wish to consider other investment options.

 

Making fixed assets investments

When you invest in fixed assets, you’ll be investing in something physical, such as commercial buildings or residential properties. The tangible nature of these assets is often more attractive to potential investors, particularly when compared to investing in stocks or shares.

Ideal for long-term investors, the cost of investing in fixed assets can be considerably cheaper than making regular trades on global stock markets. If the overall cost of your investment can be minimised, your return increases accordingly, thus maximising your profits.

 

Tailoring your portfolio

While you may be keen to make investments in fixed assets, you’ll still need to determine what type of assets you want to include in your portfolio. For example, you may be keen to focus on commercial properties, rather than residential complexes.

It’s important, however, to access professional assistance when selecting investments to enhance your portfolio. Whilst you may choose to conduct your own research into the industry, it can also be beneficial to seek help from experienced investment professionals.

Managing your finance options can be a tricky business and it can be difficult to stay neutral when your own capital is at stake. Accessing a professional, objective insight into the markets and your portfolio could help to ensure that you maximise the return on your investment, as opposed to making a loss.

 

If you’re considering making fixed asset investments, contact us now and find out how we can assist you. Whether you’re a first-time investor or an experienced trader, we can provide tailored investment solutions which will suit your needs and your objectives.